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is. Now it is time for World The black hole. How much more money | :00:22. | :00:27. | |
will BP need to set aside to cover claims over the Gulf of Mexico oil | :00:27. | :00:32. | |
spill disaster. It releases results today. | :00:32. | :00:37. | |
Imagine living in a flak like this. It is the reality for many people in | :00:37. | :00:47. | |
:00:47. | :00:49. | ||
Hong Kong. Welcome to World Business Report. | :00:49. | :00:55. | |
Also in the programme, US regulators accused JP Morgan of manipulating | :00:55. | :01:01. | |
the energy markets in California. We have the details for you. But first, | :01:01. | :01:04. | |
many of the world's biggest oil companies are reporting their | :01:04. | :01:14. | |
:01:14. | :01:16. | ||
figures. BP stands out for the length of the shadow cast by its | :01:16. | :01:24. | |
disastrous spell in the Gulf of Mexico, back in 2010. The company is | :01:24. | :01:27. | |
expected to set aside yet more money to pay for the damage caused and | :01:27. | :01:33. | |
cover claims for a compensation. It has earmarked $8.2 billion to pay | :01:34. | :01:39. | |
for the damage from this event. It warned its 1st-quarter results that | :01:39. | :01:45. | |
the figure could significantly too little. It has been ordered to pay | :01:45. | :01:49. | |
hundreds of millions of dollars, soon likely billions, for a | :01:49. | :01:55. | |
fictitious and inflated losses. It has gone to the US courts in its | :01:55. | :02:04. | |
legal battles. It is far from over. It is likely to be given until at | :02:04. | :02:11. | |
least 2014. Time to get some analysis from an energy analyst at | :02:11. | :02:16. | |
Schneider Electric. What are you expecting BP to tell us today? In | :02:16. | :02:24. | |
terms of profits, the statement is likely to be a little down from last | :02:24. | :02:30. | |
time. About $3.5 billion. That is down from last year. People will be | :02:30. | :02:34. | |
looking very much to an update on some of the things you have | :02:34. | :02:41. | |
mentioned. It could start hitting earnings. Looking at the | :02:41. | :02:44. | |
compensation claims, when the event happened three years ago, we all | :02:44. | :02:49. | |
knew that it would be hard to measure the financial fallout of | :02:49. | :02:57. | |
this. Where are we at? In total terms, they have probably allocate | :02:57. | :03:07. | |
it and spent most of $40 billion. That is in terms of the total cost. | :03:07. | :03:12. | |
In particular concern at the moment, they set aside $20 billion | :03:12. | :03:17. | |
in a trust fund to compensate those that in all aspects and also the | :03:17. | :03:25. | |
cleanup cost. And also we have the compensation claims that hit the | :03:25. | :03:31. | |
headlines recently. That money is almost all used up. Many of the | :03:31. | :03:39. | |
compensation claims are supposed to be fraudulent. That comes back to | :03:39. | :03:44. | |
the deal that they struck with regulators. Many believe it is not | :03:44. | :03:53. | |
exactly in their favour. How do you think that will play out? BP's | :03:53. | :04:01. | |
attempts to fight those allegations have not succeeded. Indeed. It is a | :04:01. | :04:11. | |
difficult, but probably realistic case. I have seen quotes of it being | :04:11. | :04:16. | |
referred to as a feeding frenzy in some places. There is a lot for BP | :04:16. | :04:26. | |
:04:26. | :04:29. | ||
to fight against. What is the long-term outlook for BP? There have | :04:29. | :04:32. | |
been some scary stories about the ultimate damage this could cause the | :04:32. | :04:39. | |
company. It is too early to say. There will not be a full report | :04:39. | :04:49. | |
:04:49. | :04:50. | ||
until 2014. People might say that they are negligent or a grossly | :04:50. | :05:00. | |
:05:00. | :05:01. | ||
negligent. Tmax four your time. A long time before BP can draw a line | :05:01. | :05:05. | |
under that event. Having a look at some other business | :05:05. | :05:09. | |
stories, JP Morgan is expected to settle a case today where it is | :05:09. | :05:15. | |
accused of manipulating energy markets. The apparently used | :05:15. | :05:19. | |
improper bidding tactics in California and the midwest to boost | :05:19. | :05:23. | |
profits. The regulatory commission says it has found its manipulative | :05:23. | :05:33. | |
:05:33. | :05:34. | ||
bidding strategies in 2010 and 2011. It echoes a similar case with | :05:34. | :05:42. | |
Barclays. We are talking about Barclays, the UK bank will be | :05:42. | :05:45. | |
reporting its results today. Analysts expected to reveal higher | :05:45. | :05:52. | |
than forecast provisions for mis-selling of financial products. | :05:52. | :05:57. | |
In the meantime, today's financial Times is reporting the bank is also | :05:57. | :06:07. | |
:06:07. | :06:07. | ||
poised to launch a �5 billion rights issue. | :06:07. | :06:11. | |
We will discuss that further when we look at today's newspaper stories. | :06:11. | :06:19. | |
Now we can focus on Japan. It has had some dire economic news. We will | :06:19. | :06:27. | |
now go to Singapore. This was not good at all. That is right, Sally. | :06:27. | :06:36. | |
The latest numbers show Prime Minister Shinzo Abe is fighting an | :06:36. | :06:45. | |
uphill battle in fighting inflation. Household spending, they were | :06:45. | :06:50. | |
expecting a positive number. But it fell by 0.4%. Industrial output fell | :06:50. | :06:59. | |
by more than 3%. It is the first fall in five months. The production | :06:59. | :07:03. | |
of cars and electronic parts slowed. This is highlighting a mixed picture | :07:03. | :07:11. | |
for demand overseas. But on the flipside, it is having an impact on | :07:11. | :07:20. | |
factory data. It expanded by 1.4%. That is a positive number. One | :07:20. | :07:26. | |
producer surveyed was also optimistic. There is also data to | :07:26. | :07:31. | |
show the unemployment rate fell to 3.9% in June. His lowest point in | :07:31. | :07:40. | |
more than four years. There is a bit of some light at the end of the | :07:40. | :07:49. | |
tunnel. But there is more work to be done to revive the Japanese economy. | :07:49. | :07:56. | |
Imagine living in a room just begin to fit a bed and a table. Imagine | :07:56. | :08:02. | |
cramming into the same space with your family. According to a recent | :08:02. | :08:06. | |
commission, that is how more than 65,000 point families live in Hong | :08:06. | :08:11. | |
Kong. It is some of the most expensive property in the world. It | :08:11. | :08:16. | |
is more than double official estimates. In our latest in a series | :08:16. | :08:19. | |
looking at housing around the world, we visited some of the | :08:19. | :08:25. | |
families. In Hong Kong it is easy to see where | :08:25. | :08:29. | |
the ritual. But between the skyscrapers, some residents live | :08:29. | :08:38. | |
appalling conditions. Look at this unit, it has been divided into two. | :08:38. | :08:44. | |
This one has been divided into four. Increasingly, units are being | :08:44. | :08:48. | |
divided into smaller and smaller units. So they can be rented out | :08:48. | :08:55. | |
cheaper to families. For $240 per month, you can rent an apartment in | :08:55. | :09:01. | |
Hong Kong. But elbow room costs extra. Inside each square metres of | :09:01. | :09:08. | |
face, this man needs to leave his food next to the rubbish. -- space. | :09:08. | :09:13. | |
He is among the 170,000 in Hong Kong crammed into small spaces. | :09:13. | :09:20. | |
TRANSLATION: I can only blame myself for being poor. I am fortunate to | :09:20. | :09:26. | |
have a place of my own. government says these units are | :09:26. | :09:30. | |
health and safety hazards. Four families share a power supply meant | :09:30. | :09:38. | |
for one. The windows do not open. If a fire breaks out, there is not an | :09:38. | :09:42. | |
ultimate escape. The government says it will build more affordable | :09:42. | :09:47. | |
homes. 92,000 of review next four years. But it is not enough to cover | :09:47. | :09:53. | |
all of the people waiting for public housing. In the meantime, families | :09:53. | :09:59. | |
like this one have to turn six square metres of space into a home. | :09:59. | :10:03. | |
Mother and son sleep side by side. There is no room for this growing | :10:04. | :10:09. | |
boy to stretch his legs. The worst thing about living here are the | :10:09. | :10:15. | |
bugs, he tells me. Cockroaches would crawl into my shoes. One time I did | :10:15. | :10:20. | |
not check before a putting them on. If it were covered with crushed | :10:20. | :10:30. | |
:10:30. | :10:31. | ||
insects. -- my feet. These stories are warning for Hong Kong. People | :10:31. | :10:36. | |
are struggling just to find space to sleep. | :10:36. | :10:43. | |
Quite shocking, when you look at that reality for many people in Hong | :10:43. | :10:48. |